Vandelay Industries estimates that total factory overhead wi…

Vandelay Industries estimates that total factory overhead will be $16,000,000 and total labor hours will be 400,000 for the year. Year-to-date actual overhead is $9,200,000 and actual labor hours are 200,000. If Vandelay uses a predetermined overhead rate based on labor hours, what is the overhead rate?

Willis Products Inc. uses the variable cost concept of apply…

Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 200,000 units of medical tablets are as follows: Variable cost per unit Fixed costs Direct materials $75 Factory overhead $800,000 Direct labor $115 Selling & admin. expense $1,200,000 Factory overhead $30 Selling & admin. expense $20 Total $240 Willis Products desires a profit equal to a 20% rate of return on invested assets of $12,000,000. Which of the following statements would be true?